CBDC AVALON WEST REGIONAL RELIEF AND RECOVERY FUNDING

Posted: May 25, 2020 | Member News

SUPPORT FOR BUSINESSES EXPERIENCING THE DIFFICULITIES OF COVID-19

The Government of Canada and Community Business Development Corporations (CBDCs) understand the difficulties the COVID-19 pandemic has caused the small business community throughout the Atlantic region. As a result, the Government of Canada has made funds available to the CBDC s to provide support and assistance to SMEs through the Regional Relief and Recovery Fund (RRRF).

Small business owners impacted as a result of the COVID-19 pandemic can apply for loans up to $40,000 through the Regional Relief and Recovery Funding (RRRF).

The Regional Relief and Recovery Fund provides funding to support businesses that do not qualify for the Canada Emergency Business Account (CEBA) the Canada Emergency Wage Subsidy (CEWS) or the Canada Emergency Commercial Rent Assistance (CECRA).

General Details:
– Maximum loan of $40,000
– 0% interest until December 31, 2022;
– No principal payments until December 31, 2022;
– Principal repayments can be voluntarily made at any time without penalty;
– 25% up to a maximum of $10,000 in loan forgiveness is available, provided the outstanding balance is paid back by December 31, 2022;
– If any part of the balance is not paid by December 31, 2022, the remaining balance will be converted to a term loan effective January 1, 2023; and,
– The full balance must be repaid no later than December 31, 2025.

Eligible Uses for Loan Funding:
The funds from this loan shall only be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation. Note that funds from this loan cannot be used to pay expenses already supported through the Canada Emergency Wage Subsidy or the Canada Emergency Commercial Rent Assistance.

Eligibility of Businesses:
– As per Terms and Conditions of the Community Futures Program, SMEs are defined as having less than 500 employees and annual sales revenue of less than $20 million, and produce goods and services for the market economy, regardless of their business structure (e.g. sole proprietorships, social enterprises, cooperatives, etc.);
– The applicant has attempted to access other relief federal supports such as the Canada Emergency Business Account (CEBA) and was ineligible or rejected
– The SME must have been viable as of March 1, 2020;
– Established before March 1, 2020; and,
– Must have been adversely impacted because of the COVID-19.

More Information:

For more information on the Regional Relief and Recovery Fund (RRRF) available in the Avalon West Region please contact CBDC Avalon West at 709-227-2147 or e-mail info.avalon@cbdc.ca.